Pricing Sandwich: Easy Way to Think About Pricing
Vegetarian option available, too. 😆
A “pricing sandwich” is an easy way to think about pricing. (Or costs!)
As an example, let’s walk through a custom order for a sandwhich (knife).
🍞 You start with the bread at the bottom—that’s your base model. Maybe a hunter with a gut hook starts at $250.
🥗 Then you add some greens, cuz we’re healthy, right? 😇 The customer has to choose some steel. Maybe they can choose between high carbon and stainless or between mono steel, san mai, and damascus.
Mono steel may be already priced into the main model, so nothing to do here.
🥩 Now for the protein. Could be the (handle) choice is between bacon (g10), ham (spalted maple), or a vegan bean patty (pure resin)—each adding a different price tag to our sandwich.
🍅 How about some extras? Tomatoes, pickles, mustard seeds, yes? (Translates to gemstone inlay, an Elforyn pommel, a tapered tang.) each add a few (or a few more) dollars on top.
🧢 And then of course the rooftop! Kydex is included—but a fine leather sheath sets you back. Want your name engraved? Get it for some extra $20!
That’s just an example. Here are other ways to do it:
Sum up all the costs—then on top add 30 percent.
Sum up all the costs—then add your hours.
All this can work for knife models, too—to calculate how much you must charge to break even and have a business. (Not a hobby.) It’s a lower bound of sorts.
But let’s not forget that pricing is marketing, too!
So, as your brand grows you may want to be a good capitalist and raise the prices until supply meets demand—ensuring you got a stable business. 🙂
How do you raise prices for custom orders while not losing track of the underlying costs or becoming arbitrary? Bump up the base bread, your percentage, or your hourly wage.
How do you not just make slick knives but also sell them like a professional? Check out our IG Links!